Reports - Researc/Technical (143)

DOCUMENT RESUME

ED 318 473 IR 014 457

TITLE Critical Connections. Communication for the Future. Summary. INSTITUTION Congress of the U.S., Washington, D.C. Office of Tecnnology Assessment. REPORT NO OTS-CIT-408 PUB DATE Jan 90 NOTE 36p.; For the full report, see IR 014 456. PUB TYPE Reports - Researc/Technical (143)

EDRS PRICE MF01/PCO2 Plus Postage. DESCRIPTORS *Access to Information; Cultural. Opportunities; Economic Development; *Government Role; *Information Technology; *Information Transfer; *Policy Formation; *Telecommunications

ABSTRACT This summary of the larger report analyzes the implications of new communication technologies for business, politics, culture, and individuals, and suggests possible strategies and options for Congressional consideration. The first of four major sections describes the changing U.S. communications infrastructure. The second section summarizes some of the opportunities and constraints presented by new communication technologies, including discussions of communication and comparative advantage in the business arena, communication and the democratic process, communication and the production of culture, and communication and the individual. Policy issues and Congressional strategies are discussed in the third section. Issues addressed include equitable access to communication opportunities; security, survivability, and interoperability of the infrastructure; modernization and technological development of the U.S. communication infrastructure; and jurisdiction in the formulation and implementation of national communication policy. The fourth section presents the case for a national market, economic, and social vision of the role of communication. Figures included throughout illustrate Congressional options in response to changes in the communication infrastructure. (GL)

*********************************************************************** Reproductions supplied by EDRS are the best that can be made from the original document. *********************************************************L************* 11.. trap t. P1

Ink

Mah

CYZ

U.S. DEPARTMENT OF EDUCATION billi Office of Educational Research and Improvement EDUCATIONAL RESOURCES INFORMATION CENTER (ERIC) 10 This document r as been reproduced as received from the person or organization COD originating it 0 Minor changes have been made to improve 11.111 reproduction quality

Points of view or opinions stated in this doCti- VIZ mint do not necessarily represent official OEM position or policy

.4 ;ETA A I I I is

_....111111111L_

t44.6%

110

%441

JAIL AMY

1:1?kit

oe aCo, T Office of TechnologyAssessment

Congressional Board of the101st Congress

EDWARD M. KENNEDY, Massachusetts,Chairman

CLARENCE E. MILLER, Ohio, ViceChairman

Senate House ERNEST F. HOLLINGS MORRIS K. UDALL South Carolina Arizona CLAIBORNE PELL GEORGE E. BROWN, JR. Rhode Island Califbriia TED STEVENS JOHN D. DINGELL Alaska Michigan ORRIN G. HATCH DON SUNDQUIST Utah Tennessee ARLES E. GRASSLEY AMO HOUGHTON Iowa New York JOHN H. GIBBONS (Non voting)

Advisory Council

DAVID S. POTTER, Chairman NEIL E. HARI. General Motors Corp. (Ret.) WILLIAM J. PERRY Iowa State University H &Q Technology Partners CHASE N. PETERSON, Vice Chairman JAMES C. HUNT Unive,y of Utah SALLY RIDE University of Tennessee CaldOrnia Space Institute CHARLES A. BCWSHER HENRY KOFFLER General Ac,ounting JOSEPH E. ROSS University of Arizona Congressional Research Service MICHEI. T. HALBOUTY JOSHUA LEDERBERG JOHN F. Michel T. Ila lbouty Energy Co. SIMS Rockeller University Usibelli Coal!inc. N

Director

0 HIi. GIBBONS

The Technology Assessment Board approves the release of this report. The views expressed in thisreport are not ocessarily those of the Board, ()TA Advisory (.:ouncil,or individual members thereof. CRITICAL COI Ti l'ECTI(Th S Communication for the Future Summary

CONGRESS OF THE UNITED STATES OFFICE OF TECHNOLOGY ASSESSMENT CONTENTS Page

INTRODUCTION 1

CHANGING COMMUNICATION INFRASTRUCTURE 1 OPPORTUNITIES AND CONSTRAINTS PRESENTED BY NEW COMMUNICATION TECHNOLOGIES Communication and Comparative Advantage in the Business Arena 3 Communication and the Democratic Process 4 Communication and the Production of Culture 6 Communication and the Individual 6 POLICY ISSUES AND CONGRESSIONAL STRATEGIES 8 Equitable Access to Communication Opportunities 8 Security/ Survivability of the Communication Infrastructure 10 Interoperability of the Communication Infrastructure 12 Modernization and Technological Development of the U.S. Communication Infrastructure 14 Jurisdiction in the Formulaticn and Implementation of National Communication Policy 16 THE NEED FOR A NATIONAL VISION OF THE ROLE OF COMMUNICATION... 16 Market VisionCommunication as a Market Commodity 19 Economic VisionCommunication as a Springboard for National Economic Growth and Development 20 Social VisionCommunication as Social Infrastructure 21 CONCLUSION 21

Figures Figure Page 1. Congressional Strategies and Options To Address Accessto Communication Opportunities 11 2. Congressional Strategies and Options To Address Security/Survivability ofthe Communication Infrastructure 13 3. Congressional Strategies and Options To Address Interope:ability/Coordination of the Communication Infrastructure 15 4. Congressional Strategies and Options To Address Modernization of the Communication Infrastructure 17 5. Congressional Strategies and Options To Address Jurisdictional Issues in Communication Policymaking 18 Foreword

The U.S. communication infrastructure is changing rapidly as a result of technological advances, deregulation, and an economic climate that is increasingly competitive. This change is affecting the way in which information is created, processed, transmitted, and providedto individuals and institutions. In addition, the lines that historically have divided domestic and international communication systems and markets are gradually disappearing. Today, decisions concerning communication systems and industries must reflecta global perspective. While new technologies have the potential to effectively meet the needs ofan information-based society, they will undoubtedly generate a number of significant social problems. In some areas they will create opportunities; in others, theymay constrain activities. How these technologies evolve and are appliedas well as who willreap their benefits and bear their costswill depend on decisions now being made in both the public and private sectors. To provide a broad context for evaluating the impacts ofnew communication technologies, the House Committee on Energy and Commerce asked the Office of Technology Assessment to undertake this study. The report analyzes the implications ofnew communication technologies for business, politics, culture, and individuals, andsuggests possible strategies and options for congressional consideration. OTA gratefully acknowledges the contribution of the Advisory Panel, workshop participants, contractors, reviewers, and many others who provided information, advice, and assistance. However, OTA bears sole responsibility for the contents of thisreport.

JOHN H. GIBBONS Director Critical Connections Advisory Panel

Christopher Burns, Chairman President, Christopher Burns, Inc. Stanley M. Besen Charles Miller Economist Director of Public Affairs The RAND Corp. AT&T Robert R. Bruce Vincent Mosco Partner Professor Debevoise & Plimpton Mass Communication Program Carleton University Lawrence Daressa President Eli Noam California Newsreel Commissioner New York State Public Service Jack Golodner Director Commission Department for Professional Employees Adam C. Powell, III AFL-CIO Head, News and Information Programming National Public Radio Doris A. Graber Professor of Political Science Wallace 0. Powers University of Illinois at Chicago General Network Planning Manager Carolina Telephone & Telegraph Co. Heather E. Hudson Director. Telecommunications Program Howard Rheingold McLaren College of Business Journalist University of San Francisco Joseph M. Robbins Jeff Jefines Executive Director, BellSouth Manager Bell Communications Research Planning, Policy & Standards BP Ametica Inc. Daniel T. Schiller Associate Professor Steve Johnson Graduate School of Library and Information Science Research Director University of California, Los Angeles Center for Urban Studies Portland State University Andrew J. Schwartzman Director Anne Jones Media Access Project Attorney Sutherland, Asbill and Brennan Robert Lewis Shayon Professor of Communications and Broadcasting Louise McCarren Annenberg School of Communications Chittendon Bank University of Pennsylvania (Former Chairman. Vermont Public Service Board)

NOTE: OTA appreciates and is grateful for the valuable assistance and thoughtful critiques provided by the advisory panel members. The panel does not, however, necessarily approve, disapprove, or endorse this report. OTA assumes full responsibility for the report and the accuracy of its contents.

iv OTA Project StaffCritical Connections: Communication for the Future

John Andelin, Assistant Director, OTA Science, Information, and Natural Resources Division

Frederick W. Weingarten, Program Manager' Communication and Information Technologies Program

James W. Cur lin, Program Manager' Communication and Informaiion Technologies Program

Project Staff

Linda Garcia, Project Director Jean E. Smith, Assistant Project Director Priscilla M. Regan, Senior Analyst Susan Koch, Analyst Mark Nadel, Analyst David Margulius, Research Analyst

Administrative Staff Elizabeth Emanuel, Administrative Assistant Karolyn St. Clair, Secretary Jo Anne Price, Secretary

'Senior Associate as of 1/89. 2As of 4/89. Contractors

Raymond U. Akwule Richard B. Kielbowicz George Mason University University of Washington Stuart N. Brotman Vincert Mosco Consultant Carleton University Christopher Burns Abbe Mowshowitz Christopher Burns, Inc. Technology Impact Research Donal A. Carbaugh Greta S. Nettleton University of Massachusetts Consultant Kan Chen Howard Rheingold University of Michigan Journalist Daniel J. Czitrom Nathan Rosenberg Mount Holyoke College Stanford University Brenda Dervin Daniel T. Schiller Ohio State University University of California, Los Angeles Joseph W. Duncan Jennifer D. Slack The Dun & Bradstreet Corp. Consultant Martin H. A. Edmonds Gerald Sussman University of Lancaster Emerson College Deborah Estrin Lucja Swiatkowski University of Southern California Consultant David S. Evans Paul E. Teske Fordham University Consultant J. D. Eve land Deborah G. Tumey Technology Applications Research Citibank. N.A. Heather E. Hudson Langdov Winner University of San Francisco Rensselaer Polytechnic Institute

vi Summary

INTRODUCTION munication via telecommunication, broadcasting, film, audio and video recording, cable, The U.S. communication system is changing print, and mail. Although the "public works" dramatically. Recent advances in information connotation of infrastructure may lead some to storage, processing, and transmission technolo- think of the term as public facilities, most of the gies, occurring in a newly deregulated and U.S. communication infrastructure is held by increasingly competitive economic climate, are private individuals and firms. rapidly reconfiguring the Nation's communication infrastructure. New computer and communication technologies have already transformed the regulation and market structure of the With digitalizationall of the media industry, altering the way information is cre- become translatable into each other ated, processed, transmitted, and provided to computer bits migrate merrilyand individuals and institutions. they escape from their traditional means of transmission.. .If that's not revolu- Changes are also taking place at the interna- tion enough, with digitalization the con- tionallevel. Because the new technologies tent becomes totally plasticany mes- encourage the flow of, and the dei..dnd for, sage, sound, or image way be edited information products and services across na- from anything into anything else. tional borders, they are wearing away the lines that historically have divided domestic and Stuart Brand international communication systems and mar- The Media Lab: kets. Communicationis one of the fastest Inventing the Future at MIT, 1988. growing sectors in the international marketplace, and international conglomerates are in- The communication infrastructurehelps creasingly being formed to provide products and shape communication through the nature of its services both at home and abroad. technical facilities and the ways in which those facilities are organized and made available to New technologies hold promise for a greatly users. Communication, in turn, is central to the enhanced system that can meet the changing business, political, and cultural life of a society, needs of an information-based society. At the and to the individuals that comprise it. same time, however, these technologies will undoubtedly generate a number of significant The societal effects of the Nation's communi- social problems. How these technologies cation infrastructure are determined by its over- evolve, as well as who will be affected posi- all technical capabilities, their availability, and tively or negatively, will depend on decisions their patterns of use. Three aspects of the now being made in both the public and private infrastructure are relevant. sectors. This study provides a context for evaluating these decisions. 1. the technical characteristics of the communication facilities themselves; CHANGING COMMUNICATION 2. the economic interdependencies among INFRASTRUCTURE producers, distributors, and users of The communication infrastructureisthe communication facilities; and underlying structure of technical facilities and 3. the policy goals and rules that define and institutional arrangements that supports corn- constrain these relationships. -1-

it 2 Critical Connections: Communication for the Future

The following advances in communication address these questions, perhaps by revisiting technologies are generating changes in all three and reevaluating the Nation's basic goals for aspects: communication. To successfully renovate the Nation's communication policy, Congress will improved technical performance in need to gain the support of, and coordinate its transmission, encoding, decoding, storage efforts with, an ever-increasing number of and retrieval, and content production, at players in a variety of decisionmaking arenas. decreasing costs; The task is a critical one, notwithstanding the convergence of communication functions, difficulties invulved in such an undertaking. If as well as communication products and Congress fails to act decisively and gener to services; broad support, the opportunity to make decentralization of intelligence and control deliberate choices about new communication throughout communication systems with technologiesand about the nature of Amer- the development of software-driven and ican society itselfwill be overtaken by rapid software-defined communication facili- technological advances, the hardening of ties; stakeholder positions and alliances, and the the availability of some discrete communi- force of international developments and cation services that were previously pro- events. vided only as part of a package (unbun- dling); increased portability of products and serv- OPPORTUNITIES AND ices; CONSTRAINTS PRESENTED BY improved ease of use through better soft- NEW COMMUNICATION ware design; TECHNOLOGIES increased networking capability; and increased capability to target messages to To determine the role that government might specific individuals or groups. play in the realm of communication, Congress These technological trends and their will need to consider the opportunities that new socioeconomic impacts are unraveling the exist- communication technologies offer society, as ing U.S. communication system, creating new well as the obstacles that prevent those opportu- opportunities, players, and problems. In the nities from being realized. The stakes are wake of these changes, fundamental questions highfor businesses, the democratic process, are being raised about how to organize commu- culture, and individualsbecause using com- nication systems to promote innovation, maxi- munication effectively provides a strategic ad- mize the benefits of competition, and capture vantage in achieving goals. Taking advantage of economies of scale and scope. Moreover, the new communication technologies in one of fact that the various media are converging as a these four realms may, however, conflict with result of digitization raises basic questions about their useinthe other three. For example, the rules that govern access to communication providing communication systems that meet the technologies. Above all, questions are being security standards of business and government raised about the goals of the communication may limit the extent to which the same systems system, as well as how, and by whom, future can be used for research and collaborative communication policy decisions should be efforts. Also, the business use of communica- made. tion storage and processing technologies to target customers may create problems of infor- If Congress is to affect the future of the U.S. mation overload and of securing privacy for communication infrastructure, it will need to individuals.

11 Summary 3

Communication and Comparative Advantage of the U.S. economic position in world trade is in the Business Arena having serious consequences for labor. Pointing to the recent success of the Japanese model of Although the United States has fared reasona- business organization, some have even sug- bly well over the past few years, many observers gested that, to be competitive, the United States are beginning to express serious reservations may also need to develop and adopt new ways about the future of the U.S. economy and its of organizing for production. ability to compete in an increasingly global environment. They point out that recent eco- Many of those who are concerned about the nomic growth in the United States has seen U.S. economy look to the communication and fueled by foreign capital, and that the growth of information sectors to provide the impetus for manufacturing exports has been slower than future growth. This focus on "telematics" is not imports. Experts note that the continued decline surprising, given the trend toward a greater role

110

*lira *Mak 1111

Photo credit: Bell Atlantic

Mobile telephones allow personnel to communicate with their offices and clients while on the road. New cordless phones that can be carried on a belt are also being introduced to facilitate communication for those who work outside or away trom their desks.

12 4 Critical Connections: Communication for the Future

for information in advanced industrial socIzties, nication competitively, many businessesare and the fact that the United States has tradition- finding it necessary to create theirown private ally had a comparative advantage in thisarea. communication networks. But thecosts of such Communication is regarded not onlyas a source systems are high, in terms of both organizational of economic growth, but alsoas a means of and financial resources. Thus,many small reconfiguring work relationshipsto make them companies cannot afford to take advantage of more effective. the new technologies. To the extent that the Given the increased dependence of American government looks to new communication businesses on information and its exchange, the technologies to foster U.S. economic growth competitive status among businesses and inthe and developmentand wishes its small and global economy will increasingly dependon the medium-sized companies to participate in technical capabilities, quality, andcost of the thisit may need to take specialsteps to communication facilities on which theycan facilitate those companies'use of these tech- rely. The emergence ofnew technologies nologies. provides a unique opportunity for businesses and nations to create comparative advan- Communication and the Democratic Process tages in a changing world economy. Failure Since communication is central to all political to exploit these opportunities is almostcer- tain to leave many businesses and nations activities, the way in which the U.S. communi- behind. cation infrastructure evolves is likelyto affect the future of the American politicalsystem. New How well American businessesare able to technologies can create new communication take advantage of tlu;se opportunities will de- pathways, allowing new gatekeepersto mediate pend on: political dialog. For thisreason, political "out- siders" have historically viewed communication the compatibility and interconnectivity of technologies as an effective means for becoming communication and information systems, political "insiders." Those already in positions the laws concerning the use of information, of authority have sometimes soughtto structure economic and technical resources, laws and behavior in order to limitaccess to new corporate culture and organizational struc- communication technologies. ture, developments in international trade and international telecommunication regula- A new form of "politics" is emerging, tion, and in ways we haven't yet noticed. The domestic regulatory policies, and living room has becomea voting booth. the availability of a skilled work force. Participation via television in Freedom Itis clear thatif government wants to Marches, in war, revolution, polluticn, promote the effective use of new communica- and other events is changingeverything. tion technologies to improve theeconomy, it Marshall McLuhan, must find ways to deal with issues suchas Quentin Fiore, Jerome Agel standards and the standards-settingprocess, The Medium is the Massage, 1967. education and training, corporate organization and labor relations, and international Today, many people regard the technological trade. advances in communicationas a means for enhancing both citizen participation andgovern- The widespread deployment ofnew commu- ment performance. The interactive, onlinecapa- nication technologies for economic advantage bilities of new technologies, it is claimed, could may also raise equity issues. To use telecommu- allow citizens to directly voice their opinionson Summary 5

fta I 4 "01

a gm. _LAU -wow"

Au-

-'4

I Photo credit: C-SPAN

C-SPAN provides regular coverage of congressional floor debates and committee hearings via its cable network. Citizens can interact directly with program participants in Washington by telephone. public issues, as well as conduct an ongoing already in positions of power of authority can dialog with other citizens, elected representa- further solidify their influence. For instance, tives, and government bureaucrats. Moreover, they claim that online,interactivepolitical the targeting capabilities of the technology dialogs will generate information about indi- could improve the ability of citizens to identify viduals that could be used by government to like-minded people, create new interest groups, monitor the activities of groups or individuals. raise financial and political support, and track Moreover, they are concerned lest the targeting the activities ofas well as lobbygovernment of specialized groups lead to greater fragmenta- officials. tion of the body politic. Some also fear that new communication capabilities will not be used to Government agencies can improve their effi- improve the substance of political debate, but ciency by using technologies that facilitate both rather to promote personality instead of policy. networking and data storage and reprocessing. For example, the ability to identify specific In government and politics, as in the past, the groups can be used to improve law enforcement, impact of new communication technologies will immigration control, and the detection of fraud, be determined to a large extent by the rules, waste, and abuse in welfare systems. Real-time norms, and skills that govern access to them. communication among government agencies, The emergence of new political gatekeepers, through the use of online systems, could also and who they are, will be of critical importance. make government operations more efficient and As information is treated more and more as a effective. commodity to be bought and soldinthe Other people are more skeptical of the effect marketplace, the traditional political gatekeep- of new technologies on government and politics. ersincluding political parties, the traditional They view them as a means by which those press, and government agenciesare being 6 Critical Connections: Communication for the Future

replaced by new kinds of political gatekeepers, provide it in more convenient and suitableways. such as political consultants, media consultants, Because these technologies are decentralized private sector vendors, and internationalnews- and widely available, they can provide the casters. Whereas the traditional gatekeepers are opportunity for more people to become actively governed by political rules and norms, thenew involved in creative activities. gatekeepers are guided to a greater extent by market criteria. Where markets dominate the However, itis likely that many of the allocation of communication resources cultural opportunities afforded bynew com- such as information, a speaking platform, or munication technologies will not be realized access to an audiencepolitical access may without further government involvementor become increasingly dependent on the ability structural changes in the communication to pay. Thus, the economic divisions among industry. Recent communication history illus- individuals and groups may be superimposed trates, Nr example, that technological develop- on the political arena. ments leading to a greater number of transmission channels do not necessarily leadto On another level, new international players, such as multinational news agencies, are replac- ing government officials as gatekeepers inareas A panoply of electronic devices puts at such as international diplomacy. Dependingon everyone's hand capacities far beyond the extent of this development, the ability of the anything that the printing press could Nation to exerciseitssovereignty through offer. Machines that think, that bring traditional diplomatic channels may becompro- great libreries into anybody's study, mised. that allow discourse among persons a half-world apart, are expanders of Communication and the human culture. Production of Culture lthiel de Sola Pool Communication isthe process by which Technologies of Freedom, 1986. culture is developed and maintained. Informa- tion, the content of communication, is the basic increases in the diversity or quality of informa- source of all human intercourse. Throughout tion content and programming. Equally impor- history, information has been embodied and tant in determining the kind of content produced communicated in an ever-expanding variety of are the economic relationships among the key media, including spoken words, graphcs, arti- players in the communication arena. If, in the facts, music, dance, written text, film, record- future, government wishes to encouragemore ings, and computer hardware and software. people to become active in creating theirown Together, these media and their distribution cultural environment, economic incentivesmay channels constitute the web of society that need to be considered. Moreover, efforts will guides the direction and pace of social develop- need to be made not only to assure that people ment. From this perspective, the communication can access .4 broad variety of information and of information permeates the cultural environ- cultural content, but also that they have the skills ment and is essential to all aspects of social life. and resources necessary to create, package, and distribute information. The new information and communication technologies provide many opportunitiesto enhance our culture by expanding the infrastruc- Communication and the Individual ture for information-sharing and exchange. Emerging technologies promise to provide Communication can be used to generate greater individuals with opportunities to increase their amounts of information and new cultural forms, personal autonomy, enhance their sense of to make this knowledge more accessible, and to connection to others, and, in general, enable

tJ Summary 7 greater accomplishments and self-fulfillment. These same technologies, however, could pro- duce the opposite outcomes, contributing to «00 personal isolation, increased dependency, and the loss of privacy. How new technologies will affect individuals will depend in part on the rules that Congress adopts to govern access to information and the new communication technologies. For example, government decisions about access to the data that are collected in the course of economic transactions will affect individual privacy rights. Also, decisions about what kinds of information services telephone companies can provide will affect the speed at which, and the extent to which, fiber technologies and the information services they make available can be deployed to the home. rik

The medium, or process, of our time (tr electric technologyis reshaping and ;Art' restructuring patterns of social interde- pendence and every aspect of our personal life. Photo credit: Bell Atlantic New caller identification terminals use a small electronic Marshal McLuhan, screen to display the telephone number from which an Quentin Fiore, and Jerome Agel incoming call was placed. The Medium is the Massage, 1967. new communication technologies on individu- The Nation's communication infrastructure is als. In telephony, for example, there is general becoming increasingly complex. Individuals or agreement that services should be provided firms are becoming more responsible for design- universally anu it has been clear what those ing the various communication resources they services should be. Until recently, achieving require. In order to take the greatest advantage consensus was relatively simple because the of new technologies, people will need to be range of telephone services that could be offered more technically skilled and have access to was narrow. The needs of all users could thus be better "navigational tools" (means to help peo- equated and the cost of service could be shared; ple access the systems, analogous to today's TV therefore,theprice thatindividuals were guides or telephone books). Navigational tools charged for service could be set relatively low. will be crucial in making individuals aware of With shared usage it was possible to allow some communication opportunities, and in providing users to subsidize others. guidance in the use of these systems. The communication capabilities of individuals Today, the concept of providing universal their "literacy" in the languages, commands, service on a common, shared network, as well and structures of future systemswill as the system of subsidies that supported it, is largely determine the benefits they receive. breaking down. Major questions are being raised about the kinds of communication The extent to which access depends on the services that are needed, and the degree to ability to pay will also determine the impact of which all users have equivalent needs. that 8 Critical Connections: Communication for the Future

can be served in the same fashion. Thus, the heart of social activity. For example, the question of what should constitute universal growing use of private branch exchanges service in an informationage needs to be (PBXs) and high -Speed data transmission lines readdressed. Depending on how this question is to create private ousiness telephone networks answered, the United States could be faced with may, if carried too far, drain the pool of finar.cial a two-tiered communication system, which and h'iman resources available to the public would give rise to issues of equitableaccess. For switched telephone network. This could limit example, if businesses view their needsas the extent to which the communication unique and decide to develop theirown private infrastructure can serve other economic, politi- networks, as some are doing now, theremay be cal, and sr cial goals. Making such trade-offs is insufficient revenues available tosupport an likely tr.', be more contentious in the future advanced public network to serve all individu- because the strategic value of information is als. Under such circumstances, thecosts and increasing in business, politics, culture, and prices of services would be higher, to theextent individual development and personal that there are diminished economies of scale and growth. scope. Analyzing the potential for conflictamong New technologies will not only affect how new communication opportunities, OTA identi- people access information, but also how infor- fied five major areas in which public policy mation impinges on people's lives. Thepace of issues are likely to arise: technological change has created confusion about the appropriate standards for information 1. equitable access to communicationoppor- use. For instance, what privacy protections tunities, should individuals expect? Whileeager to take 2. security and survivability of thecommur - advantage of new electronic shopping opportu- cation inrrastructure, nities, many people are unaware that transaction 3. interoperability of the communicatiel data generated in the processcan be collected, infrastructure, processed, and used in the futureas tools for 4. modernization and technological develop- marketing or even surveillance. While embrac- ment of the communication infrastructure, ing new ways toaccess information for their and own use, many individuals may find it difficult 5. jurisdiction in formulating and imple- to cope with the fact that others, in turn,now menting national communication policy. have much greater access to them. These are characterized below, along with congressional strategies and options for ad- POLICY ISSUES AND dressing them. CONGRESSIONAL STRATEGIES Equitable Access to Communication Although new communication technologies Opportunities afford a myriad of socioeconomic opportunities, many of these opportunities may go unrealized. The opportunities for people to participate in Some may failto materialize for lack of economic, political, and cultural life dependon foresight, public demand,orpoliticalwill. their ability to access and use communication Others may founder because ofpoor circum- and information services. Individuals need skills stances and timing. Some opportunities can only and tools to locate the communication path- be fulfilled at the expense of others. ways, information, and audiences in a timely fashion and in an appropriate form. Unequal The need to mak.: trade-offsamong oppor- access a) communication resources leads to tunitiesisparticularly great in commu- unequal advantages, and ultimately to inequali- nication because communication liesat the ties in social and economic opportunities. Summary 9

OTA found that changes inthe U.S. continue at their present pace, and if media communication infrastructure are likely to gatekeepers, in selecting content, are increas- broaden the gap between those who can ingly guided by market criteria.Itis more access communication services and use infor- difficult to establish appropriate rules for access matiGn strategically and those who cannot. in this rapidly changing environment. New Moreover, the people most likely to be ad- technologies are challenging traditional reg- versely affected are those whom the new ulatory criteria, magnifying the confusion communication technologies could help the and inconsistencies that surround first mostthe poor, the educationally disadvan- amendment rights, and dismantling the tra- taged, the geographically and technologically ditional definition of universal service. isolated, and the struggling small and medium- sized business. In addressinz, these problems, Congress may have to move in some new, and untried, OTA identified a number of factors that are directions. Past policies to promote access to likely to contribute to access problems. For both communication and information focused example, technological advances, deregulation, on assuring access to transmission media. Barri- and increased competition have led to the ers to access were reduced by structuring the reduction of a number of communication subsi- rights of those who owned the transmission dies, and to changes in the way in which many systems (for example, by limiting the number of communication services are operated and fi- broadcast stations that an individual can own), nanced. For some, these developments are or by structuring the prices that users paid for increasing the cost of purchasing communica- transmission service (as in the case of telephone tion services. The overall costs of identifying, and postal rates). Using transmission media as locating, and applying releiant information in a the leverage for access was the chosen regula- timely fashion are on the rise. Costs are increas- tory approach, given first amendment proscrip- ing because there is a larger volume of informa- tions limiting government's role in regulating tion for individuals and businesses to cope with, content. It was, moreover, a relatively effective and because the tools and systems needed to deal approach because transmission media repre- with the larger volume are becoming more sented the major bottleneck to communication complex. Access to communication services is access. also likely to be more limited in the future if trends to.ard increased mergers and vertical Today, this is no longer the case. Although integration of communication-related industries transmission bottlenecksstillexist(as,for example, in the local telephone exchange), new Ownership in every major medium now kinds of bottlenecks are also appearir3. Some of includes investors from other media these have more to do with the identification, owners of newspapers, magazines, production, and application of information con- broadcasting, cable systems, books and tent than with its transmission. These bottle- movies mixed together. In the past, each necks occur because people lack, for example, medium used to act like a watchdog over the necessary technicalskills,navigational the behavior of its competing media tools, and access to production facilities. To ...But now the watchdogs have been effectively promote communication access in cross-bred into an amiable hybrid, with the future, government policies will need to seldom an embarrassing bark. focus more on these newly emerging barriers to access. Ben H. Bagdikian, The Media Monopoly. 1987. Congress could pursue six different strategies to improve access to communication services: 10 Critical Connections: Communication for the Future

1. influence the means by which communi- is more difficult to achieve security and surviva- cation services are funded and financed, bility goals. 2. structure the prices at which communication services are offered, In the past, issues surrounding the security 3. provide direct government supportfor and survivability of the communication infra- users to access information and communi- structure were not important to most Americans. cation paths, Such problems were generally addressed behind 4. regulate and/or redefine therights of the scenes in private businesses and govern- media owners, ment. These issues are becoming less containa- 5. influence the level and availability of the ble. OTA found that security and survivability tools and resources required to access goals are becoming more important and communication and information services, more visible; but it is also becoming more and difficult to make the trade-offs in communi- 6. assume a more proactive role to assure catioki policy required to achieve these goals. robust debate on issues of public impor- Stakeholders' views differ about how these tance. trade -offs should be made and what policies should be pursued. In addition, government These strategies, and the options that each might agencies are not adequately organized to resolve entail, an.. summarized in figure 1. An analysis security and survivability issues and achieve of the benefits and disadvantages of adopting security goals. any of these options is provided in chapter 9 of the full report. Congress may need to play a more active role in resolving competing security goals and in promoting the security of both private Security /Survivability of the and public communication systems. The Fed- Communication Infrastructure eral Government's role in this area was tradi- Adequate security and survivability are es- tionally limited to assuring that the Nation's sential characteristics of an acceptablecommu- communication infrastructure was secure and nication ir.frastructure. However, establishinga reliable enough to meet the needs for defense secure and survivable infrastructure requires and emergency preparedness. Today, however, trade-offs against access, cost, and ease of use. the public's stake in the security and survivabil- Although most people probably support the ity of communication systems goes well beyond general goal of security and survivability, there defense and disasters. Given the defndence. of is disagreement with respect to the level of many corporations on communication and infor- m security and survivability needed, and the extent ation systems, there are now larger social costs to which other communication goals shoCd be fromf major failures in private systems. For sacrificed to achieve these goals. example, in November 1985, a computer problem in the Bank of New York's officespre- OTA identified a number of factors and vented the company from completing an ek- developments that can affect the security and change of government securities. This fault in survivability of the communication infrastruc- the system not only cost the bank $1.5 to $2 ture. The increased reliance of business and million after taxes: it also forced the bank to government on communication and information borrow $24 billion from the Federal Reserve systems makes them more vulnerable to system System. In this sense, communication security failures. The number and variety of problems problems occurring in the private sector are that may threaten the security or reliability of much more difficult to contain. As the role and communication systems are greater than in the value of communication increase, the likelihood past. Communication systems are more corn- that security problems will spill over into the plex, decentralized, and interdependent. Thus, it public sector also increases. Summary 11

Figure 1Congressional Strategies and Options To Address Access to Communication Opportunities

Option A Option C Reconsider policies Require allmedia for funding and owners to provide Providing financial some services on a Strategy 1 Support common -carrieror noncommercial SharedDds.s InfluenCe the rcial media means by which communication services are funded and financed. Option increase support tor Option 8 Option A advertiser.subsichzed media that provide Adopt alternatives Establish or the public with to rate-of-return maintain 'ate of noncommercial regulation return regulation information at prices strategy 2 already heavily subsidized Structure the prices at which communication services are offered.

Option A Option C Proulae monetary Provide public subsides to institutions with Option A individuals and communication Re examine and re special groups using equipmento' evaluate the information and increase current traditional tegula communicat.or baths furcirig or Subsidies Strategy 3 for its purchase Option C tory categories of common carrierprint Provide direct home common and broadcasting in government support carrier status for the light of lecfmn for users to access critical nai..igational logical change and information and tools. recognizing market developments communication paths. Op'.on 8 their essential. to determine whether Provioe equipment facility nature they continue to be (0r subsidies for its the most suitable for purchase' to indiv.cual fostering communication use's access Strategy 4 Regulate and/or redefine the rights I of mediaowners. Option 0 Option Sverven ieuuoe Rescind Me cabic 'rents to p'oy,Oe teiephone company Option A OptionC P.,bhc access to crossownersh.p rules Foster the 'eationship '.1"0f, Df0 OuCliOn lac;11.eS to increase the corn between the YoODCZ r! pettior faced by Producers and researcn 0" Strategy 5 the cabie inou,Try distributors nt influence the level communicator CO^,e^! and availability of the tools and resources

required to access 1 communication and Option B Option 0 information services. Provide Federal Pro, ce tunc.ng for Support for creation of OptionC Option A I techroloq:ca. iiteraCy Cilriograph.ca. devices Loc.ty theaiiness Requoe media orovoers Programs !CrOubliClyfunded roctime tor tyclaci UdrOlel ni0,e str,ogent OrCdrdriS 3,10 OJI)-:c interest standards Caste's elele Strategy to Woe, ,neC,a Assume a more proactive role to assure robust debate on issues of public Option 0 Option B importance. r.tano,ve time an° space Aidool reforin on communication Dam lep.siation lyS CiscuSS -Or dubiC DOlity issues

SOURCE: Othoe of Technology Assessment. 1990 12 Critical Connections: Communication for the Future

Congress could pursue six different strategies In the past, there were few problems in to address the security and survivability of I'm achieving adequate interoperability within the communication infrastructure: communication infrastructure. In the area of 1. undertake further study and analysis of 4-.:ephony, AT&T provided end-to-end service changing security and survivability needs .d system interconnection. The government of the communication infrastructure; played an important role in mass media and 2. facilitate the transfer ...I-information about information processing, assuring, when necessary, that there was adequate standardization. security and survivt-xility, garnered in the public agencies, 'o the private sector; Interoperability is likely to become more of 3. establish security and survivability re- a technical and administrative problem in the quirements for key industrial sectors; future. Not only will the need for interopera- 4. provide special emergency facilities for bility be greater, but achieving it is also likely private sector use; to be more difficult. Five developments have 5. improve coordination of survivability contributed to the difficulties of ensuring inter- planning; and operability. First, the growing importance of 6. increase activity geared to preventing information and communication as a strategic security breaches. resource attaches greater importance to the These strategies, and the options that each might interoperability of any communication infra- entail, are summarized in figure 2 and analyzed structure. Second, many of the traditional ways in chapter 10 of the full report. that interoperability has been achieved have been eliminated. Third, the globalization of the economy has led to a greater need for interna- Interoperability of the tional standards and the extension of standards- Communicaeion Infrastructure setting efforts to the international arena. Fourth, Communication systems are, by definition, the number and variety of playersinthe designed to interconnect. Thus interconnection, standards-setting process have increased, as or interoperability, is critical to the communica- have the costs and stakes of adopting standards. tion infrastructure. The more interoperable a Fifth, the standards that need to be set are more communication system is, the more connections complex (e.g., anticipatory, process standards it can provide and the more accessible it will be such as open systems interconnection [OSI]1 to everyone on an equal basis. lnteroperability and integratedservicesdigital networks provides for redundancy, thus improving system [ISDN]).2 survivability. Interoperability is important not only in a technical sense, but in an administra- Although the overall circumstances in which tive sense as well. To be most useful, the particular government strategies are likely to be infrastructure needs to be transparent to users in the most appropriate can be generalized, these terms of the services offered. will have to be tailored to each case. Congress could pursue five different strategies to address Interoperability also has a downside. It can the interoperability of the communication infra- make a communication system more vulnerable structure: to breaches in security by broadening access. To the extent that interoperability requires stan- 1. support research to provide better ,iata and dardization, it can retard technological innova- a more analytic rationale for standards- tion and slow development of the system. setting decisions;

10S1 is an architecture for computer networks and a family of standards that permits data communication and processingamong diverse technologies. 2ISDN is a network that provides intepated switch and facility digital connections between user-network interfacesto provide or support a range of different communication services. Summary 13

Figure 2Congressional Strategies and Options To Address Security/Survivability of the Communication Infrastructure

Option A Option C Continue funding ano Use government support for the NRC procurement policieS to evaluate the slate to create incentives of reliability of the for vendors to build U S communication better security into infrastructure for their computer based Purposes of national communication Strategy 1 security an0 Systems Undertake further emergency stt.dy andattalysis of preparedness changing eau* and survivability needs of the communication infrastructure. Option 8 Provide funding and Support tor stAles Of the security of commumcnt Strategy 2 SyS!eins Facilitate the transfer of information about security and survivability, garnered in the public agencies. to the private sector.

Strategy 3 Establish security and survivability requirements for key Industrial sectors.

Strategy 4 Provide special emergency facilities for private sector use

Option C Option A S..100ori the goe,nrent Strategy 5 CevelOament of hcehl,,es to DM Improve coordination rr,cula to be used vendors and .;sers for of survivability -brar es in schoO's in1D%91/^(! cerrouler planning. museums an() other Secur.h, pubs facilities to foster a more Positive computer eth,C Strategy 6 Increase activity 1------I geared to preventing security breaches Option Ret re compute ,!ws dhc the eflIPMeSdno Oeh,.0es fOr .itiuCC

SOURCE: Office of Technology Assessment, 1990. 14 Critical Connections: Communication for the Future

2. allow for the emergence of market solu- those related to research and development, tions,either inthe form of gateway capital investment, and humanresource technologies or through the setting of de development. facto standards; 3. indirectly influence the standards-setting Historically, the United States has set the process by providing assistance and guid- international pace for technological develop- ance to foster the setting of standards; ment in communication and information tech- 4. influence the setting of particular stan- nologies. However, in the late 1970s, technolog- dards by providing incentives or imposing ical advances began to outstrip the pace of sanctions; and change within the public shared telecommunica- 5. mandate industrywiut. standards. tion network, finally leading to the divestiture of AT&T and the emergence of a number of These strategies, and the options that each might competing communication networks andserv- entail, are summarized in figure 3 and analyzed ice vendors. Although competition has clearly in chapter 11 of the full report. contributed to growth and economic activity in OTA identified three specific cases where the communication sector, OTA identified a interoperabilityor the lack of itwill have numbe. factors that suggest that in a compet- major implications for U.S. communication itive, global environment, the United States may policy. These are related to the establishment of find it increasingly difficult to retain its world ISDN, the evolution of OSI, and the creation of technological leadership. an open network architecture (ONA).3 In con- The first factor is the development of interna- sidering whether Congress sh .'uld take additional competition resulting in an increase in the tional steps to encourage the standards-setting pace of technological advancement in commu- process in these three cases, certain factors need nication infrastructure. The second is the high to be kept in mind. These are outlined, together capital costs of modernizing the communication with corresponding policy responses, in chapter infrastructure and uncertainties as to how it will 11 of the full report (tables 11-1, 11-2, and be financed. The potential inefficiencies that 11-3). could result from lack of national coordination and planning for communication represent the Modernization and Technological third factor. The fourth is the proactive role Development of the U.S. played by foreign governments in modernizing Communication Infrastructure their communication systems. The fifth factor is the fractionated U.S. decisionmaking process. As the role of information increases in all The sixth is the limits of humanresources for aspects of life, additional demands will be made communication. on the communication infrastructure. Some of these demands may increasingly be in conflict. Congress could pursue three strategies to The communication infrastructure will have to address the modernization of the communica- be more competitive in providing communication infrastructure: tion at the international level. To adequately 1. involve the government directly in the meet and balance all of these communication development, planning, financing, and co- needs, the U.S. communication infrastructure ordination of the communication infra- must make maximum use of advances in com- structure; munication and information technologies. It will 2. provide indirect incentives for moderniz- need to do so in the most efficient and cost- ing and developing the communication effective manner. The most critical policiesare infrastructure; and

30NA is the overall design of a carrier's basic network facilities andservices to permit all users of the basic network to interconnect to specific basic network functions and interfaces on an unbundled and equal access basis. Figure 3Congressional Strategies and Options To Address Interoperability!Coordination of the Communication Infrastructure

Strategy Support research ta.provide better data and a more analytic rationale for, standardssetting deCisions.

.11.1 Strategy 2 Allow for the emergence of market solutions, either In the form orgateassy technologies or through the setting of de facto standards.

Strategy 3 Indirectly influence the standardslettIng broce,by providing assistance enu guidance to foster the setting of standards. L Option A Option B Option C tare gall'erwo Aec,,ce 3S!S Of I ^.(.outdoe anc !acalta:e The ecnaqe of .rtermat:o^ 0,1`111,0e.elOr .":'ease :ne -,;s-c! o! a!! .ntereStea cOstS ot ^cr.0,10.,(Tat.00 :Ja'!.e,, io the standaCs Strategy 4 stenams NO!' '''(1 Mous', Intitiehte thesetting of particular standards by providing Incentives or J imposing sanctions. Option Option A Zo re N..00nti tor use govemmelt o.ocurement Dower to encowage SI:cU "Os set:Ing Strategy 5 Mandate Industry-wide standards.

SOURCE Office of Technology Assessment. 1990

..., '1 r".., 16 Critical Connections: Communication for the Future

3. create a regulatory environment that is agency to formulate overall communication more conducive to the modernization of policy. the communication infrastructure. OTA findings suggest that a number of These strategies, and the options that each might factors are likely to make these problems worse entail, are summarized in figure 4 and analyzed in the future. These include the shift of commu- in chapter 12 of the full report. nication decisionmaking from political institutions to the marketplace, the expanding links between communication policies and other so- Jurisdiction in the Formulation and cioeconomic policies, the increased interde- Implementation of National pendence of national and international commu- Communication Policy nication policies, and the emergence of large sersoften multinational corporationsas Rapid technological advances in communi- key players in communication decisions. cation, coupled with the unraveling of a traditional regulatory framework in the Congress could pursue four basic strategies to United States, have given rise to a highly address jurisdictional issues in communication uncertain communication policy environ- policymaking: ment. Occurring at a time when the role of 1. take the lead in establishing communica- informationis particularlyimportant, these tion policy priorities and in allocating developments will affect everyone. Each indi- organizational responsibilities accord- vidual has a high stake in the outcome of current ingly; communication policy debates. An exception- 2. establish an ongoing organizational mech- ally equitable, efficient, and effective poli- anism, outside of Congress, to resolve cymaking process will be required tofind policy inconsistencies and jurisdictional appropriate solutions to the complex and thorny disputes; policy dilemmas that society faces, and to 3. provide an interagency and/or interjuris- reconcile the conflicts that will inevitably arise dictional mechanism forcoordinating among competingeven if meritorious communication policy and resolving juris- interests. At the very least, the allocation of dictional issues; and authotity and the rules of the game will need to 4. establish an institutional basis for facilitat- be clear and perceived by the public to be ing coordination and cooperation among legitimate. government agencies, industry providers, and communication users. As the United States participatesinthe increasingly global information economy,the These strategies, and the options each might lack of a coherent and coordinated national entail, are summarized in figure 5 and analyzed communication policymaking process is likely in chapter 13 of the full report. to severely hinder the development and execu- tion of a strategy for dealing with the myriad of THE NEED FOR A NATIONAL communication issues that will emerge. The VISION OF THE ROLE OF American policy process has always been some- what disorderly because of the important role of COMMUNICATION federalism and the separation of powers in the The choice of congressional policy strategies U.S. political system. However, its untidiness and options will depend primarily on how has been particularly noticeable in communica- Congress views the role of communication in tion policy a fact that has already prompted 21st-century America and what communication two Presidential policy boards On 1951 and goalsit will set for the Nation. This study 1968) to recommend the creation of a central provides Congress with a roadmap for matching Figure 4Congressional Strategies and Options To Address Modernization of the Communication Infrastructure

Strategy 1 Direct government involvement in the development. planning. financing, and coordination of the communkation infrastructure.

Option A Option C Option E

C,.i,tt .1...PAeq .1C :he 0,0r1g.C, den,OYMen1Ofnew Nal.fr c .!,a^c;er,e0' 10.:1e COrnrrorCal.On ,e5e.rt n !PC r"ncpes Dy r"..Y.ruC'ute Ceve'ODn'er' 0,cmr y^ :re !re %.0.0" ceo.ovirtn cf tOn.rlur,t al,Cn 03 Cy 0,mur.c.,0. or ere nc,.b!ry oc (10.114 anC eany ",0,n1,1`.0^ Mutely 2 r"Cust,y 'use, !of ur^,, 'esn0^.N.V.I ,e; rn0:0qe,, Provide indirect incentives for modernizing and developing the communication Option 8 Option 0 Option F gOvernmen: t in agency r'ioirlie etc lac ..live ',,r.c,ng tor R&D .r ham government min !re c.sserr n;Do^ Ot Option C Option B Option A .vea Ot coecalcn !ne ,esoOnSe.1,1y !Or R&D.'110011,1'....r. 1,0' Lsidt;- sr. 1,cei 3r :AT% !3, ,inn -fo,0a!,00 G.'ecnno dna p.,,;Or c,it; :ecnnoloes cotronalno ',he !o Ceveloonlen' 0' cOrnmun(at:or Ana -fliorrnat On teCrnr...Qy

Matey 3 Create a regulatory environment ihat is more Conducive to Me modemiratiOn.of the communicatiOn. infrastructure.

Option A Option 8 .cOption''' C ,121e LI ( ::De.' I.`:',1.-eQ. leworo,e I'd NOW+, r r 0.1;

SOURCE: Office of Technology Assessment, 1990

CZ c",.;

' a 18 Critical Connections: Communication for the Future

Figure 5Congressional Strategies and Options To Address Jurisdictional Issues in Communication Policymaking

Option A Reassess and Option C redefine national Establish a Joint communication policy Communication goals. revising the Strategy 1 . Committee within Communications Act Congress. Take the lead,in, of 1934 where establishing ' appropriate Communication policy priorities inci,10, -°, 1 .allocating orgarilzational responsibilities. Option B actordingly. Establish a national commission to Option C Option A evaluate the changed Establish a new Designate the FCC as communication executive agency to the lead organization environment and 2410egy 2. address responsible for recommend to communication coordinating Establish an Ongoing Congress appropriate issues communication policy organizational. policy changes and :mechanism; :outside steps to implement I of COngreis,10 them zest*, policy inconsistencies and Option 0 Option B .luritdictkinal Establish an agency Designate an existing disputes. within the Exer.utive executive branch Option A Office of the President agency. such as the to develop a NTIA. as the lead Establish an comprehensive agency to coordinate interagency communication policy communication policy coordinating body and to coordinate the with representatives activities of existing Strategy 3 from all the agencies communication Provide An that have agencies interagency-end/or responsibility for Me rjUrisdIctional communication policy mechanlem. tor:- coordinating Option A communication policy 1 and resolving Encourage or support Option B Option C u risdictIonal Issues. me establishment of establish an ongoing Establish a advisory bodies to Federal/State agency. government provide input to along the lines of the corporation to perform executive agencies Federal/State Boards. essential and the FCC on to coordinate and Strategy 4 communication specific resolve Federal/State services for the commJnication Establish in interiurisdictional public issues institutional basis for communication policy facilitatirig issues L coordination and F cooperation among government, agencies, Option B Industry providers, Provide for alternative and communication means of dipute users. resolution, m FCC proceedings

SOURCE: Office of Technology Assessment, 1990. Summary 19

the new technologies to add value to existing There is nothing more difficult to plan, products and services, want a chance to enter the more doubtful of success, nor more market and compete. Many business users who dangerous to manage than the creation operate their own private communication net- of a new order of things. works also subscribe to this point of view. So, too, would consumer advocates who, viewing Machiavelli, 1513. communication primarily as a commodity, are concerned most about the cost of service to U.S. communication policy with consistent consumers. strategies and policy options, based on the five issues discussed above. Three possible visions Viewing communication policy from this are presented here: perspective, theideal role for the Federal Government would be to intervene to correct or 1. communication as a market commodity, ameliorate situations where market failures can 2. communication as a springboard for eco- be clearly identified. Members of this group nomic growth and development, and might disagree, however, about the means of 3. communication as a basic societal infra- government intervention. While some favor structure. trying new or experimental regulatory ap- proaches such as price-cap regulation for tele- These visions are purposely sharply drawn to phone companies, others insist that, where real provide clear alternatives. competition is lacking, adequate protection for users and potential competitors requires tradi- Market VisionCommunication as a tional rate- of- ret'irn regulation. With these dif- Market Commodity ferences in mind, the following congressional strategies are consistent with the vision of This vision reflects the view that communica- communication as a commodity, and the gov- tion is an end in itself, and that communication ernment's perceived role: services should be treated like any other commodity that can be bought and sold. This view reexamining and readdressing regulatory isillustrated at the extreme by former FCC categories in terms of the market structure Chairman Fowler's statement equating televi- of various industries as it is affected by sion sets and toasters, which, he said, leads to the technological advances, and strengthening conclusion that the marketplace is the most regulatory procedures where required; appropriate mechanism for determining the refining computer crime laws and penal- production, distribution, and use of television ties; sets as well as other communication devices and allowing for the emergence of market services. solutions to problems of incompatibility; Those with this perspective include many influencing the standards-setting process antitrust economists and lawyers who place a indirectly by providing assistance and high value on economic efficiency, viewing its guidance to foster standards-setting; attainment as the measure of an optimal social providing indirect incentives for moderniz- outcome. They claim that through market com- ing and developing the communication petition the criterion of efficiency is most likely infrastructure; to be met. Supporting this viewpoint are many new participants in the communication system providing for some technology research (for example, resellers of communication serv- and development; and ices, system integrators, and gateway and infor- phasing out some existing regulatory agen- mation vendors) who, eager to take advantage of cies and integrating others.

30 20 Critical Connections: Communication for the Future

Economic VisionCommunication as a cannot afford to develop their own communica- Springboard for National Economic tion networks, but who view communicationas Growth and Development a strategic resource, might also be inclined to favor the view of communication as the "spring- This vision reflects concerns about the state board for economic growth." of the U.S. economy and the decline of the U.S. competitive position in an increasingly global Proponents of this view call on the Federal economy, and calls for the promotion of com- Government to play a more active role in munication technologies and the modernization promoting technological development and the of the communication infrastructure. Propo- modernization of the communication infrastruc- nents view communication not just as an end in ture. While they might differ on how to promote itself, but also- -and more importantlyas the communication technologies for economic means for bringing about renewed economic ends, the congressional strategies consistent growth and development in the United States. with this overall viewpoint include: Some are concerned lest other nationsviewing providing direct government support for the modernization of their communication infra- users to access information and communi- structures as part of their overall national cation paths; industrial policiesemploy new communication technologies to gain a competitive advan- undertaking further study and analysis of tage over the United States. the changing security and survivability needs of the communication infrastructure; Most who hold this view would agree that the providing special emergency facilities for communication infrastructure can serve a num- private sector use; ber of social goals. However, because of the improving coordination of survivability growing intensity of international economic planning; competition, some would argue that, where societal goals conflict, using communication to increasing activities geared to prevent se- foster national economic goals should take curity breaches; precedence. They would point out that, if the supporting research to prop ide better data United States fails to achieve economicsuccess, and a greater analytic rationale for stan- itwill no longer have the wherewithal to dards decisions; accomplish other goals. while allowing for market solutions to standards problems, providing for a gov- Such arguments have been made by a number ernment role when necessary to achieve of government officials who deal with trade and overall, national economic goals; national industrial policy issues. This viewpoint is also reflected in some recent government providing indirect incentives to encourage reports calling for a revision of the Modified investment in modernization; Final Judgment" and alternatives to rate-of- removing regulatory barriers that discour- return regulation. Most of the regional Bell age modernization; and operating companies that stand to benefit from taking the lead in establishing communica- these changes also use this argument when tion policy priorities, and in allocating presenting their case to government. Some users organizational responsibilities accord- in small and medium-sized businesses who ingly.

4The Modified Final Judgment was the 1982 consent agreement entered into tiy AT&T and the Department of Justice.and subsequently approved by the U.S. District Court for the District of Columbia. AT&T retained most long-distance operations and terminalequipment. The Bell operating companies were spun off and reorganized into seven regional holding companies. Theywere permitted to offer local monopoly services. as well as toll services within their restricted operating territories. They could providenew terminal equipment. but could not engage in manufacturing. Summary 21

Social VisionCommunication as influencing the means by which communi- Social Infrastructure cation services are funded and financed; structuring the prices at which communica- This view emphasizes the linkages between tion and information services are offered; communication, human activity, and social regulating and redefining the rights of structures. It focuses on the relationship be- media-owners; tween access to communication and services, influencing the level and availability of the and access to power, wealth, and position in tools and resources required to access society. Hence, in weighing communication communication and information services; policy choices, it places great weight on equity. and Because proponents of this vision hold that assuming a more proactive role to assure communication can serve as a means as well as robust debate on issues of public impor- an end, they often propo,,e communication- tance. related solutions to many of society's problems. Whereas those who adhere to the Economic This viewpoint is currently not well repre- Vision might want to limit government's role if sented in the communication policy community. it appeared to create additional burdens for There are, however, many in the academic business and industry, those who view the communityespecially in departments of com- infrastructure more generically might not be so munication and social sciencewho strongly inclined. Considering all social goals to be more advocate this point of view. There are also many or less equivalent, adherents of this Social educators, health providers, government offi- Vision might also favor the following strategies: cials, and citizen activists who see in communication a potential for assisting them in solving establishing security and survivability their problems. Communication proviuers who standards for communication systems in could benefit from significant economies of key industrial sectors; scale and scope by expanding and integrating influencing the setting of particular stan- their services would also support this view. dards by providing direct incentives or by imposing sanctions where necessary to Those who \ iew communication as a means achieve social ends; and to accomplish societal ends historically have mandating industrywide standards where tended to grow in number (or at least to become necessary to achieve social ends. more vocal) as technological advances in communication give rise to new aspirations. This was so for the penny press, telegraph, telephone, CONCLUSION radio, and television; and it is likely to be so as Before selecting communication policy strat- the Nation moves forward in an age of informa- egies for the future, Congress will first need to tion and advanced communication. consider how it views the role of communication For those who view communication as social in society. This report provides a context for infrastructure, the role for government is to these considerations by analyzing and reviewing ensure not only that needed technologies and the changes taking place in the communication communication services exist, but also that they infrastructure. It identifies the range of societal are available to everyone and will serve all opportunities that new communication technol- social purposes on an equitable basis. Thus, they ogies afford, and the problems and issues to strongly advocatein addition to many of the which these new technologies give rise.If strategies identified for the Economic Vision Congress can agree on a consistent vision of abovecongressional strategies that are more communication goals, many policy choices will directly designed to improve access. These naturally follow. What is first required is a would include, for example: vision, and a commitment to pursue it. 22 CriticalConnections: CommunicationfortheFuture

NOTE: Copies of the report "Critical Connections: Commu- nication for the Future" can be purchased from the Superin- tendent of Documents, U.S. Government Printing Office, Washington, DC 20402-9325, GPO stock No. 052-003-01143-3. Superintendent of Documents Publication Order Form Order Process:no Code Charge your order. * 6581 It's easy!

YES9 please send me the following indicated publications: Critical Connections: Communication for the Future (approximately 400 pages) GPO stock number 052-003-01143-3; price $17.00.

1.The total cost of my order is $ (International customers please add an additional 25%.) All prices include regular domestic postage and handling and are good through 7/90. After this date, please call Order andInformation Desk at 202-783-3238 to verify prices. Please Type or Print 2. 3. Please choose method of payment: (Company or personal name) Check payable to the Superintendent of Documents

(Additional address/attention line) 1-7 GPO Deposit Account VISA. CHOICE or MasterCard Account (Street address) P (City. State. ZIP Code) Thank you for your order! (Credit card expiration date)

(Daytime phone including area code) (Signature) 1/90 4. Mail To:Superintendent of Documents, Goverhment Printing Office, Washington. D.C. 20402-9325 Office of Technology Assessment.

The Office of Technology Assessment (OTA)was created in 1972 as an analytical arm of Congress. OTA's basic function isto help legislative policy- makers anticipate and plan for theconsequences of technological changes and to examine the many ways, expected and unexpected, in which technology affects people's lives. The assessment of technology calls forexploration of the physical, biological, economic, social, and politicalimpacts that can result from applications of scientific knowledge. OTA providesCongress with in- dependent and timely information about the potential effectsbothbenefi- cial and harmfulof technological applications. Requests for studies are made by chairmen of standing committees ofthe House of Representatives or Senate; by the TechnologyAssessment Board, the governing body of OTA; or by the Director of OTA inconsultation with the Board. The Technology Assessment Board is composed of six membersof the I louse, six members of the Senate, and the OTADirector, who is a non- voting member. OTA has studies under way in nineprogram areas: energy and materi- als; industry, technology, and employment; internationalsecurity and commerce; biologicalapplications; food and renewableresources;health; communication and information technologies;oceans and environment; and science, education, and transportation. CONGRESS OF THE UNITED STATES OFFICE OF TECHNOLOGY ASSESSMENT

WASHINGTON. D.C. 20510-8025 POSTAGE AND FEES PAID OFFICE OF TECHNOLOGY ASSESSMENT OFFICIAL BUSINESS 379 PENALTY FOR PRIVATE USE. $300

OTA-CIT-408 JANUARY 1990